Gov’t Settles $40M in Supplier Arrears After Allocating $15M, PM Reports
The government has cleared $40 million in outstanding supplier arrears this year, Prime Minister Gaston Browne told Parliament on Thursday, describing the move as part of a wider effort to strengthen fiscal credibility and restore confidence in public finances.
Browne said the settlement was achieved through a combination of cash payments and set-offs, following an allocation of $15 million in the 2025 budget intended specifically to reduce amounts owed to local businesses.
He said clearing the long-standing arrears was necessary to stabilize the financial environment for contractors, service providers and small businesses that depend on timely government payments.
The Prime Minister framed the arrears reduction as evidence of improved fiscal management, noting that better revenue performance and tighter expenditure controls have given the government more room to address inherited obligations without jeopardizing current programmes.
According to the budget presentation, the arrears clearance is one element of a broader consolidation strategy that also includes lowering the debt-to-GDP ratio, building reserves and ensuring more predictable payments across the public sector.
Browne said the government intends to avoid the build-up of new arrears by strengthening treasury operations and enforcing stricter financial discipline across ministries and state agencies.
The budget debate continues next week.
